Why New Parents Need Life Insurance
Dan Levenson March 06, 2018
As a new parent, life insurance may be one of the last things on your mind. You’re young, you’re healthy, and purchasing that critical insurance seems like an unnecessary expense—especially added to the financial demands of a new family member.
All the same, whether you’re a young new parent or you waited until later in life to have your first child, there are several key benefits to purchasing life insurance now.
The Benefits of Buying Young
When you’re young and healthy, you expect to live a long time and enjoy your family—and that’s what life insurance companies expect, too. As a result, insurance for younger individuals is often much less expensive than insurance for older individuals.
For each decade that you wait to acquire life insurance, the cost of your monthly premiums will increase substantially. By locking it in now, you can enjoy lower premiums throughout the lifespan of your policy, allowing you to experience those cost savings as your family ages.
Protecting Your Family
When you have a young child, protecting your family becomes paramount. The increased expenses that go along with having a new baby can be difficult for a two-income family to manage, much less a family that has unexpectedly been reduced by a member.
If something happened to you, how would your family survive financially? Does your spouse currently have a job, or have they chosen to stay at home to raise your new baby?
Even if you’re relatively certain that your family could survive on your spouse’s income, purchasing life insurance helps cover things like:
- End-of-life medical expenses, especially if you are seriously ill or severely injured for some time preceding your death
- Funeral and burial costs
- A financial cushion that will allow your spouse to get their feet back under them before they have to dive into being the family’s sole provider
No one likes to imagine that the worst will happen—and when you have a small child, you plan on living a lifetime with them. Unfortunately, things don’t always work out that way, but offering your family the protection of life insurance can provide all of you with peace of mind.
Life Insurance for Stay-at-Home Parents
If one member of your partnership is staying at home with the baby, they might not be contributing financially to the family’s income—but they are still contributing! Take a quick look at the cost of daycare in your area and realize that regardless of any income-based contribution to the family, the stay-at-home spouse is contributing that much to your monthly finances by helping avoid those costs.
Consider a life insurance policy for your stay-at-home spouse that will allow you, in the unfortunate event of their death, to pay for daycare until your child is ready to start kindergarten. It can also help take care of funeral expenses, burial expenses, and any medical bills that might be incurred.
When evaluating the amount of a stay-at-home parent’s life insurance policy, it’s also important to consider any side income that they might be contributing to the family. That “play money” could be sorely missed if your spouse is no longer there to provide it.
Deciding What Coverage You Need
If you’re on the fence about the type of life insurance coverage that’s right for you and your family, take the time to consult a professional and discuss the coverage that will allow you to provide for your family in the event if your untimely death.
When you contact InsureYourHome.com, we’ll work with you to find a policy that will offer financial benefits for your family if something happens to you, on a budget that you can afford—even with the added expense of a new baby in the house.